Centre Approves ₹8,146 Crore Tato-II Hydroelectric Project in Arunachal Pradesh

New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved an investment of ₹8,146.21 crore for the construction of the 700 MW Tato-II Hydroelectric Project (HEP) in Shi Yomi district of Arunachal Pradesh. The project, with four units of 175 MW each, is expected to be completed in 72 months.

Once operational, the plant will generate 2,738.06 million units (MU) of electricity annually, significantly improving the power supply in Arunachal Pradesh and contributing to balancing the national grid.

The project will be executed through a joint venture between North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. The Centre will provide ₹458.79 crore as budgetary support for the construction of roads, bridges, and transmission lines under enabling infrastructure, in addition to ₹436.13 crore as Central Financial Assistance towards the state’s equity share.

Arunachal Pradesh will receive 12% free power from the project, along with 1% earmarked for the Local Area Development Fund (LADF). The project is also expected to bring extensive socio-economic benefits to the region, including infrastructure upgrades and opportunities for local enterprises, suppliers, and MSMEs under the Aatmanirbhar Bharat Abhiyan.

The initiative will include the development of 32.88 km of roads and bridges, which will largely be available for public use. Dedicated project funds of ₹20 crore will be used to build essential facilities such as hospitals, schools, marketplaces, and playgrounds. Local residents are expected to benefit from compensation, employment, and CSR initiatives associated with the project.

Officials said the Tato-II HEP would not only boost the state’s power sector but also transform Shi Yomi district through long-term infrastructure and economic development.